Malaysia to Rely on Spending, Exports
To Keep Economy on Growth Track

KUALA LUMPUR, Malaysia -- Malaysia is counting mainly on increased government spending and a robust export sector to sustain its economic recovery. But Kuala Lumpur's strategy provides little room to maneuver should the global economy slow sharply, some economists say.

Lower-than-expected direct foreign investment and a drop in export growth because of a slower U.S. economy will probably hold Malaysia's economic expansion next year below the 7.5% inflation-adjusted growth forecast for 2000. "We need foreign investment...